csadeev
Good to see a researched based post on RXL from you.
First up, Capricorn did not produce a DFS for the Gibson project in April 2023 as you claim. It was a Pre Feasibility Study (PFS) with an updated MRE due late this year. A DFS is some time off.
Your comparisons between Rox, Capricorn (Gibson) and De Grey are only valid if you include CAPEX.
The average grade of gold at Gibson is less than 1 g/t. Similarly, Hemi is a very low grade (also refractory) deposit.
With a huge pre-production expenditure on large capacity high volume mines these low-grade resources can be very profitable.
By contrast Rox has a high-grade resource, one of the very few not yet mined (restarted).
Rox has chosen to exploit its high-grade advantage by starting production based on 5g/t feed, POG assumption is a low $2,450 oz Au with a very low CAPEX model of around $100M about 1/10 of DEG’s.
CAPEX is important because finance is drying up and becoming much more expensive although some have suggested that Rox should have taken the alternative high CAPEX pathway with a big mill to get into production quicker instead of trying to increase the indicated gold ounces to make their low CAPEX model work (question at the AGM?).
Rox will upscale using the profits from the small-scale production to expand production to 100K oz gold PA+ by milling lower grades of gold ore.
But Rox’s model could change dramatically if they are successful in their current drilling campaign. Exploration is always risky but the Youanmi Shear Zone historically hosts world class, high-grade deposits and is very underexplored.
Currans, Sovereign, Linda Gossan and the near mine targets at Youanmi South along with greenfields targets such as Bunker North are about as good as exploration targets get. Another Penny Gold is certainly possible or if the targets turn out to be smaller but high grade their combined gold resources could power Rox into production quickly or change the model.
Further reading on RXL’s high grade gold resources
https://www.investi.com.au/api/announcements/rxl/b6e30c23-dd8.pdf
(20min delay)